Liquidity – guarantee schemes

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Liquidity – guarantee schemes

The Norwegian government has proposed a state guarantee for bank credit to SMEs hit by the current crisis. This enables banks to distribute credit to these firms with the state guaranteeing up to 90 percent of the credit.

The scheme is available to companies with up to 250 employed and a turnover of less than 50 bn Euro. The government has allocated 50 bn NOK to the scheme. Details will be specified through secondary regulation during the coming days. (20/3/20)

Capital K

As suggested by the Norwegian central bank, the government decided to reduce the counter cyclical buffer with 1,5 percentage points (to 1,0%). The measure was taken, underlining that further reduction was not foreseen. (13/3/20)

Other

The central bank further reduced the policy rate to 0,25 percent, which constitutes a reduction of 1,25 percentage points over the last two weeks. (20/3/19)

The capital flow to larger companies that are financed in the bond market, will be guaranteed through the reopening of a public bond fund. Measures to secure the functioning of the market for business bond market is also being developed. For microbusinesses, handling of credit is supported through Innovation Norway. Investment in increased employee competence as an alternative to ordinary work is supported through increased public support. (13/3/20)

The government has also taken some measures with regard to business taxation. Current losses can be carried back against last years surplus. Owners of companies with current losses are able to defer wealth tax. Payment of preliminary taxes for the self-employed is postponed from March 15th to May 1st. Passenger tax on air travel has been suspended between January 1st and October 31st, 2020. (13/3/20).